USOIL (4H) Oil is trading slightly above $50. Will more buyers step in and push prices higher or is it time for the bulls to take profits? There is significant separation between the current price and the 50 SMA. Are the bulls willing to keep buying at these prices or will they prefer a retracement to the moving average before taking prices higher? "The trend is...
USOIL (Daily) still in an uptrend starting from the lows created on February 11 2016. Price is however at resistance at $50 as well as the 61.8% retracement of the previous down swing. This zone is also a previous swing high. The last two times the market approached this zone it turned lower. Will the market turn lower again? or will price trades to the top of the...
On the GBPUSD (4H) chart, price is trading close to the low of the bear channel after bouncing off the 161.8% (at 1.2690x) extension of a prior swing low. Since we are currently trading below the range lows, I would expect this area to act as resistance. The market is over extended and there is significant separation between price and the 50 SMA as well as the 20...
On the GBPUSD (Daily) chart, price has broken through the low of a trading range. It is also at the low of a down channel. Until there is a clear breakout from the range, I am looking for range rotation. Hence I am expecting price to return to the top of the range. Note that since the sharp move down (resulting from the Brexit vote) the 38.2% retracement has not...
This is such a CHOP. Trade from the edges of the support and resistance zones and avoid the middle. There is resistance above the consolidation zone (1.125xx - 1.128xx). The top (down channel) line will also act as resistance.
Support is at the down channel low as well as between (1.112xx - 1.114xx) where the market has bounced several times.
However expect...
On the Daily chart the EURUSD continues to chop sideways. This has been the case from the beginning of September 2016. Currently price appears to be supported by the 50 SMA and chops between the 1.11 to the 1.13 zone with 1.12 acting as support and resistance at times. Overall we are still in a bearish trend since we have not broken the down channel line.
If I am a bull;
Look for buying opportunities at the 1.3 support zone or the low of the bull channel with targets being the top of the bull channel or the 161.8% extension, 78.6% retracement confluence. Remember the bear channel high (4H chart) which will act as falling resistance.
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If I am a bear;
Wait for strong break and weak retest of the 1.3 zone and also...
On the 4H chart the GBPUSD is in a string down trend. Price is currently at the top of the bear channel. However the 1.3 round number has acted as support. Expect further down move if price breaks the 1.3 zone, at least to support at 1.293x zone. If price breaks (upward) the down channel expect the previous high (1.3120) to be tested which is close to the 61.8%...
If I am a bull?
Price is bouncing off the 1.2 support zone as well as the lows of the bull channel. Look for buying opportunities with targets at 1) previous structure highs 1.127x 2) 127.2% extension at 1.129x. Buy retracements if price trades towards the channel highs.
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If I am a bear?
Price seems to be supported at the 1.2 round number which is also previous...
If I am a bull?
Price is bouncing off the 20 SMA. There is however overhead resistance (previous high at $47.72), bull channel high and wedge high to work through. Instead of buying into resistance, wait for a deeper retracement before buying or wait for a strong breakout of resistance with a weak retest before buying.
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If I am a bear?
After such a strong move...
Oil is now at the top of a wedge pattern on the 4H chart. Look to see how price reacts at this falling resistance. It is also close to the 127.2% extension ($47.53) of the previous swing high. The previous high of $47.72 created on September 8 could also act as resistance. Look to buy retracements but be aware of overhead resistance zones. Look for reversal...
Oil surges higher as OPEC agreed on Wednesday to reduce its oil output to 32.5 million bpd from the current production levels of around 33.24 million bpd.
Price approaching higher selling zone at 47.5x - 47.7x. Look for bearish price action.
Look for pullback into support for buying opportunities.
IF I AM A BULL: Buy pullbacks as price rotates to the top of the bear channel. Targets are at the top of the bear channel or the 46.20 - 46.50 zone.
IF I AM A BEAR: Sell failures at the top of the bear channel. Price is currently at the 61.8% retracement. If price action confirms it as also possible to short at this level with targets at the low of the bear...
Typically a rally is what i would expect from this type of falling wedge formation, however because it's in the middle of nowhere the bullish move isn't on my radar. What would be on my radar is a move back up into previous structure support which could potentially act as support now looking for a continuation to the downside.
